Which University of Texas fees are military veterans exempt from under the state tuition exemption?

Plain-English summary

Texas has long given certain military veterans a break on the cost of attending a state university. In 1995 that exemption lived in section 54.203 of the Education Code, the provision now widely known as the Hazlewood exemption. Ray Farabee, the general counsel for the University of Texas System, asked the Attorney General two practical questions about how to apply it at UT Austin: first, who counts as a "Cold War" veteran when the statute never says when the Cold War ended, and second, which specific fees and charges the exemption does and does not cover.

On the first question, the office concluded that the Texas legislature had simply never fixed an end date for the "Cold War" in section 54.203. The statute tied the start of the Cold War to the end of the Korean War national emergency (January 31, 1955) but left the closing date blank, and the legislature had not filled it in even when it amended the statute in 1993. Federal law was no help either, because title 38 of the United States Code, which catalogs wartime periods for veterans' benefits, does not use the term "Cold War" at all. Some federal statutes from the early 1990s spoke of the Cold War as a past event but never named a precise end date. Because no end date existed, the office concluded that, as of the date of the opinion, active military service from June 27, 1950 to the present could be counted toward qualifying a veteran for the exemption (service during the Cold War period required more than 180 days of active duty, exclusive of training, while service during the Korean national emergency from June 27, 1950 to January 31, 1955 carried no minimum-service requirement).

On the second question, the office walked through which charges the exemption reaches. Section 54.203 exempted qualifying veterans from "all dues, fees, and charges," but it carved out three categories: property deposit fees, student services fees, and charges for lodging, board, or clothing. "Student services fees" was a defined term covering a long list of items (recreational activities; health and medical services; parking; intramural and intercollegiate athletics; artists and lecture series; student publications; student government; transportation; and more), so veterans had to pay those. Compulsory student services fees were capped by statute at $150 per semester or summer session. By contrast, the building use fees and other charges authorized under chapter 55 of the Education Code, which fund permanent campus improvements, were not part of the carve-out. Relying on its own prior opinion (H-37, 1973) and a follow-up letter advisory, the office concluded that the veterans' exemption did cover chapter 55 charges, so qualifying veterans did not have to pay those.

Currency note

This opinion was issued in 1995. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

The opinion itself flagged that the legislature was already changing this area: a footnote notes that Senate Bill 114, signed in May 1995, removed the financial-need requirement from section 54.203 starting with the 1995 fall semester. The veterans' tuition exemption has been amended and reorganized several times since, including renumbering of the underlying statute and changes to who qualifies and what the exemption covers. Read this page for the office's 1995 reasoning, and check the current Education Code and Texas Higher Education Coordinating Board rules before relying on any specific fee, cap, or eligibility date mentioned here.

What the opinion meant at the time

For veterans and the students relying on the exemption: At the time of the opinion, a veteran who had served on active duty during the open-ended "Cold War" period (more than 180 days, exclusive of training, any time after January 31, 1955) or during the Korean national emergency (June 27, 1950 to January 31, 1955, with no minimum) and who otherwise met the statute's residency and citizenship conditions could claim the section 54.203 exemption. The exemption covered tuition and most charges, including the building use fees under chapter 55, but it did not cover property deposit fees, lodging/board/clothing charges, or student services fees.

For university administrators and their counsel: The opinion told UT Austin how to draw the line. It treated the long list of "student services" in section 54.513 as outside the exemption, confirmed the $150 per-semester statutory cap on compulsory student services fees, and confirmed (following AG Opinion H-37) that chapter 55 building use charges fell inside the exemption. It also told administrators not to refuse the exemption to post-1955 veterans on the theory that the Cold War had ended, because the legislature had set no end date.

Common questions

Did Texas veterans have to pay student fees even if they qualified for the tuition exemption?
Yes, for some fees. Under this 1995 opinion, the section 54.203 exemption did not cover property deposit fees, charges for lodging, board, or clothing, or student services fees. Compulsory student services fees were capped by statute at $150 per semester or summer session. Veterans were exempt from tuition and most other charges.

What counted as a "student services fee" the veteran still had to pay?
The statute defined "student services" broadly: textbook rentals, recreational activities, health and medical services, group hospitalization, parking privileges, intramural and intercollegiate athletics, artists and lecture series, debating and oratorical activities, student publications, student government, the student fees advisory committee, transportation, and other board-approved student activities. A fee for any of those was a student services fee outside the exemption.

How did the office decide who was a "Cold War" veteran when the statute gave no end date?
The office read the statute as it was written. Section 54.203 tied the Cold War's start to the end of the Korean national emergency (January 31, 1955) but never set an end date, and the legislature left it blank even when it amended the statute in 1993. Federal law did not define the term either. So the office concluded that qualifying active service ran from June 27, 1950 to the present.

Were veterans exempt from university building use fees?
Yes. The office concluded, following its earlier Attorney General Opinion H-37 (1973), that the veterans' exemption in section 54.203(a) included the building use fees and other charges authorized under chapter 55 of the Education Code. Those charges fund permanent campus improvements and were not part of the statute's carve-out.

Background and statutory framework

Section 54.203 of the Education Code required the governing board of each institution of higher education to exempt certain veterans from "all dues, fees, and charges, including fees for correspondence courses but excluding property deposit fees, student services fees, and any fees or charges for lodging, board, or clothing," provided the applicant met residency, citizenship, and (at the time) financial-need conditions. Subdivision (a)(4) extended the exemption to people honorably discharged after more than 180 days of active duty who served during enumerated eras, including "the cold war which began on the date of the termination of the national emergency" referenced in subdivision (a)(3), the Korean War emergency that began June 27, 1950. The office noted that subdivision (4) was first enacted in 1967 and that section 54.203 was amended as recently as 1993, yet the legislature had never specified when the Cold War ended.

On the federal side, the office examined title 38 of the United States Code, the codification of veterans' benefits law, which lists wartime periods (Spanish-American War, World War I, World War II, the Korean Conflict ending January 31, 1955, the Vietnam Era, and the Persian Gulf War) but does not use the term "Cold War." The office also reviewed recent federal statutes, including the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992 (Pub. L. No. 102-484) and the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337), which referred to the post-Cold War period and to "remnants of cold war hostility" but never fixed a termination date. From that, the office concluded the legislature had not determined an end date and that service after June 27, 1950 could count.

On the fee question, the office relied on the definitions in section 54.513, which defines "student services" and distinguishes compulsory fees (charged to all students, capped at $150 per semester under subsection (j)) from voluntary fees (charged only to students who use the service). Section 54.514 sets up a student fees advisory committee. Chapter 55, by contrast, governs financing of permanent campus improvements: section 55.17 lets a board pledge "building use fees" to pay bonds, and section 55.16 lets a board charge for the "occupancy, services, use, and/or availability" of campus property. The office read its own precedent, Attorney General Opinion H-37 (1973), affirmed by Letter Advisory No. 59 (1973), to place chapter 55 charges inside the veterans' exemption.

Citations

Statutes and authorities discussed:

• Education Code § 54.203 (veterans' exemption from dues, fees, and charges; subdivisions (a)(3) Korean national emergency and (a)(4) Cold War and other eras)
• Education Code § 54.513 (student services fees; definitions of "student services," "compulsory fee," and "voluntary fee"; $150 per-semester cap on compulsory fees)
• Education Code § 54.514 (student fees advisory committee)
• Education Code chapter 55; §§ 55.16, 55.17 (building use fees and charges for campus property)
• 38 U.S.C. § 101 (federal wartime periods for veterans' benefits)
• Pub. L. No. 102-484 (Defense Conversion, Reinvestment, and Transition Assistance Act of 1992); Public Law 103-337 (National Defense Authorization Act for Fiscal Year 1995)
• Senate Bill 114, Act of May 9, 1995, 74th Leg., R.S., ch. 159 (removed the financial-need requirement, effective fall 1995)

Prior Attorney General materials relied on:

• Attorney General Opinion H-37 (1973); Letter Advisory No. 59 (1973) (chapter 55 charges fall within the veterans' exemption)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/dan-morales/dm-0359
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/1995/dm0359.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain (including footnote numbering) — the linked PDF is authoritative.

Office of the Attorney General
State of Texas

DAN MORALES
ATTORNEY GENERAL

July 21, 1995

Mr. Ray Farabee
Vice Chancellor and General Counsel
The University of Texas System
201 West Seventh Street
Austin, Texas 78701-2981

Opinion No. DM-359

Re: Eligibility of certain individuals, enrolled as students at the University of Texas at Austin, to claim exemption from payment of various fees and charges (RQ-787)

Dear Mr. Farabee:

You have requested our opinion regarding the eligibility of certain individuals, enrolled as students at the University of Texas at Austin, to claim exemption from payment of various fees and charges. Section 54.203 of the Education Code provides, in pertinent part:

(a) The governing board of each institution of higher education shall exempt the following persons from the payment of all dues, fees, and charges, including fees for correspondence courses but excluding property deposit fees, student services fees, and any fees or charges for lodging, board, or clothing, provided the persons seeking the exemptions demonstrate financial need as defined by the Texas Higher Education Coordinating Board,[1] were citizens of Texas at the time they entered the services indicated, and have resided in Texas for at least the period of 12 months before the date of registration:
. . .
(3) all honorably discharged men and women of the armed forces of the United States who served during the national emergency which began on June 27, 1950, and which is referred to as the Korean War; and
(4) all persons who were honorably discharged from the armed forces of the United States after serving on active military duty, excluding training, for more than 180 days and who served a portion of their active duty during:[2] [Emphasis and footnotes added.]
(A) the cold war which began on the date of the termination of the national emergency cited in Subdivision (3) of this subsection;
(B) the Vietnam era which began on December 21, 1961, and ended on May 5, 1975;
(C) the Grenada and Lebanon era which began on August 24, 1982, and ended on July 31, 1984;
(D) the Panama era which began on December 20, 1989, and ended on January 21, 1990;

You suggest that the term "Cold War" referred to above in subdivision (4) refers to "the time period between the Korean conflict and the beginning of the Vietnam Era (1/31/55 to 8/5/64)" and that "[e]ven though the provisions of Section 54.203 fail to provide a specific date for the 'Cold War,' apparently it is now conceded by all public officials that the Cold War period has ended."

Subdivision (4) of subsection 54.203(a) was first enacted, in a slightly different form, in 1967. Act of May 25, 1967, 60th Leg., R.S., ch. 506, § 1, 1967 Tex. Gen. Laws 1141, 1142. Although section 54.203 was amended as recently as 1993, Act of May 14, 1993, 73d Leg., R.S., ch. 435, § 1(a)(1), 1993 Tex. Gen. Laws 1744, 1744, the legislature has never specified a termination date for the Cold War. Had the Cold War ended on August 5, 1964, as you suggest, surely the legislature would have noted that fact in its 1993 amendment of section 54.203.

Neither is federal law useful in establishing such a date. A brief submitted to us by Ms. Mary Lou Keener, general counsel for the federal Department of Veterans Affairs, indicates that title 38 of the United States Code, "a codification of veterans' benefits laws primarily administered by the Department," does not even use the term "Cold War."[3]

Certain recent federal laws seem to imply that the Cold War has ended, without naming any particular date for its termination. For instance, in the Defense Conversion, Reinvestment, and Transition Assistance Act of 1992, Pub. L. No. 102-484, 1992 U.S.C.C.A.N. (106 Stat.) 2658, enacted on October 23, 1992, Congress made "the following findings":

(1) the collapse of communism in Eastern Europe and the dissolution of the Soviet Union have fundamentally changed the military threat that formed the basis for the national security policy of the United States since the end of World War II.
. . .
(3) As the United States proceeds with the post-Cold War defense build-down, the Nation must recognize and address the impact of reduced defense spending on the military personnel, civilian employees, and defense industry workers who have been the foundation of the national defense policies of the United States.

Id. § 4101, at 2658-59 (emphasis added). In the same statute, Congress used the following language:

(1) On February 1, 1992, the President of the United States and the President of the Russian Federation agreed in a Joint Statement that 'Russia and the United States do not regard each other as potential adversaries' and stated further that, 'We will work to remove any remnants of cold war hostility, including taking steps to reduce our strategic arsenals.'

Id. § 1321, at 2549 (emphasis added).

These statutes, while apparently demonstrating that Congress, as of October, 1992, believed the Cold War to be a past event, do not specifically so state; and, furthermore, they recognize the possibility of lingering "remnants of Cold War hostility." Id. In any event, these pronouncements fail utterly to designate a precise date for the termination of the Cold War, and thus may not properly be cited as evidence of such a termination for purposes of subsection 54.203(a) of the Education Code.[4][5] We are thus obliged to conclude that, as of the date of issuance of this opinion, the legislature has not determined the termination date of the Cold War, and as a result, all active military service from June 27, 1950, until the present may be applied to the purpose of qualifying a "veteran," as described in section 54.203, for the tuition and fee exemptions granted therein.[6]

You also ask "[w]hat fees and charges are included in the statutory exemption." Specifically, there seems to be confusion regarding the meaning of "student services fees" in section 54.203. Section 54.513(b) of the Education Code provides that

[s]ubject to Section 54.514 of this subchapter[7] and subsections (j) and (k)[8] of this section, the board of regents of The University of Texas System may charge and collect from students registered at The University of Texas at Austin fees to cover the cost of student services that the board considers necessary or desirable in carrying out the educational functions of the university. [Footnotes added.]

"Student services" is defined in subsection (a) of section 54.513 to include

textbook rentals; recreational activities; health, hospital, and other medical services; group hospitalization; automobile parking privileges; intramural and intercollegiate athletics; artists and lecture series and other cultural entertainment; debating and oratorical activities; student publications; student government; student fees advisory committee; student transportation services; and any other student activities and services specifically authorized and approved by the board; the term does not include services for which a fee may be charged under the specific authority of any other section of this code.

Clearly, a fee for any of the services or activities listed in subsection (a) constitutes a "student services" fee, and under the terms of section 54.203(a), an eligible veteran is not exempt from payment of such fee. Section 54.513(c) authorizes the board of regents to determine whether "fees for a particular student service [are] voluntary or compulsory."[9] With regard to compulsory fees, subsection (j) provides that their total "charged under this section to students for any semester or summer session may not exceed $150."

Finally, you suggest that the exemption for veterans provided by section 54.203(a) does not include fees authorized under chapter 55 of the Education Code. That chapter relates to permissible methods for financing permanent improvements to a public university. Section 55.17 authorizes a board of regents to pledge "building use fees" toward the payment of bonds, and section 55.16 allows a board to impose "charges" upon "students and others for the occupancy, services, use, and/or availability of all or any of its property, buildings, structures, activities, operations, or other facilities." In Attorney General Opinion H-37 (1973), this office declared that the exemption for veterans created by section 54.203(a) includes those fees and charges imposed under chapter 55. In a subsequent opinion, that result was affirmed. Letter Advisory No. 59 (1973). Thus, veterans are exempt from all charges authorized under chapter 55.

In summary, we conclude that veterans qualifying for the various fee exemptions under section 54.203 are not exempted from the payment of (1) property deposit fees; (2) charges relating to lodging, board, or clothing; (3) compulsory student services fees as described in and limited by section 54.513(a)(2) and (j), that is, up to a maximum of $150 per semester or summer session; and (4) all voluntary student services fees as described in section 54.513(a)(3). Qualifying veterans are exempt from all other fees and charges.

SUMMARY

All persons honorably discharged from the armed forces of the United States since January 31, 1955, who served on active duty for more than 180 days, exclusive of training, are entitled to exemption from the payment of all fees and charges imposed upon students by The University of Texas at Austin, except (1) property deposit fees; (2) charges related to lodging, board, and clothing; (3) voluntary student services fees as described in section 54.513(a)(3) of the Education Code; and (4) compulsory student services fees as described in and limited by section 54.513(a)(2) and (j) of the Education Code.

DAN MORALES
Attorney General of Texas

JORGE VEGA
First Assistant Attorney General

SARAH J. SHIRLEY
Chair, Opinion Committee

Prepared by Rick Gilpin
Assistant Attorney General

Footnotes:

[1] Senate Bill 114, enacted by the current session of the legislature and signed into law by Governor Bush on May 23, 1995, removes the financial need requirement from section 54.203. See Act of May 9, 1995, 74th Leg., R.S., ch. 159, § 1, available in Westlaw, TX-Legis database (copies available at House Document Distribution Office). The amendment will take effect beginning with the 1995 fall semester. Id. § 2.

[2] The "national emergency" declared by President Truman on June 27, 1950, in response to the invasion of the Republic of Korea ("South Korea") by forces of the Democratic People's Republic of Korea ("North Korea"), was not officially terminated until January 31, 1955, even though an armistice had been agreed upon in June, 1953. 38 U.S.C. § 101. See infra note 3.

[3] Title 38, section 101, of the United States Code recognizes the following periods of wartime: (1) Spanish-American War: April 21, 1898, to July 4, 1902; (2) Mexican Border Period: May 9, 1916, to April 5, 1917; (3) World War I: April 6, 1917, to November 11, 1918; (4) World War II: December 7, 1941, to December 31, 1946; (5) Korean Conflict: June 27, 1950, to January 31, 1955; (6) Vietnam Era: August 5, 1964, to May 7, 1975; (7) Persian Gulf War: August 2, 1990, to a yet-to-be-determined date. Thus for purposes of federal veterans benefits, military service after May 7, 1975, and before August 2, 1990, a period of more than 15 years, is not included.

[4] Section 1031(e)(2) of Public Law 103-337, the National Defense Authorization Act for Fiscal Year 1995, defines "unaccounted-for Cold War POW/MIA" as "a member of the Armed Forces or civilian employee of the United States who, as a result of service during the period from September 2, 1945, to August 21, 1991, was at any time classified as a prisoner of war or missing-in-action and whose person or remains have not been returned to United States control and who remains unaccounted for." Act of Oct. 5, 1994, 1994 U.S.C.C.A.N. (108 Stat.) 2839 (emphasis added).

[5] According to Bartlett's Familiar Quotations, the term "cold war" was first used by Bernard Baruch in 1947. BARTLETT'S FAMILIAR QUOTATIONS 729 (15th ed. 1980). In a speech before a committee of the United States Senate in 1948, Mr. Baruch declared that "[w]e are in the midst of a cold war which is getting warmer." Id. The Oxford English Dictionary defines "cold war" as hostilities short of armed conflict, consisting in threats, violent propaganda, subversive political activities, or the like; spec. those between the U.S.S.R. and the western powers after the 1939-45 war. OXFORD ENGLISH DICTIONARY 462-63 (2d ed. 1989). Ms. Keener, referred to on page two above as general counsel for the Department of Veterans Affairs, explains in her brief the impediments to relying on such an amorphous term: "We suggest that the term is one of media creation which, through usage, became commonly associated with the ideological conflict and economic, political, and military rivalry between the United States, as well as other Western democracies, and the former Soviet Union and Eastern bloc countries. It roughly covers the period beginning with Prime Minister Winston Churchill's famous 'Iron Curtain' speech at Westminster College, Fulton, Missouri on March 5, 1946, and ending with the fall of the so-called 'Berlin Wall' on November 19 [sic], 1989. As such, it may be seen to overlap this century's more recent 'hot war' periods designated above." Letter from Mary A. Keener, Esq., United States Department of Veterans Affairs (Apr. 28, 1995) (on file with this Office).

[6] Subsection (a) of section 54.203 applies to military service during the "Cold War," that is, since January 31, 1955, only if the individual has served for more than 180 days, exclusive of training; no minimum period of service is required if the person served during the "national emergency" that existed from June 27, 1950, until January 31, 1955. Educ. Code § 54.203(a).

[7] Section 54.514 establishes a "student fees advisory committee," whose purpose it is "to advise the administration of The University of Texas at Austin on the type, level, and expenditure of compulsory fees for student services collected at the university under Section 54.513 of this subchapter." Id. § 54.514.

[8] Subsection (k) permits the use of general revenue funds, under particular circumstances, "to support the services and activities provided for in this section." Id. § 54.513(k).

[9] Section 54.513 defines "compulsory fee" as "a fee that is charged to all students enrolled in the university." Id. § 54.513(a)(2). A "voluntary fee," on the other hand, is "a fee that is charged only to those students who make use of the student service for which the fee is established." Id. § 54.513(a)(3).